Since 24 December 2018, it has been possible to keep one's securities movement records in a fully dematerialised manner. This development was made possible by the entry into force of Decree 2018-1226 on the use of a shared electronic recording device for the representation and transmission of financial securities and for the issue and transfer of minibonds.
First of all, the notion of blockchain appears in the Commercial Code under Article R. 225-86. Indeed, this provision refers to a "shared electronic recording device" (DEEP). It is under this name that blockchain enters French law.
Secondly, the notion of blockchain is also present in the Monetary and Financial Code, in Article R. 211-9-7. This article states that "the shared electronic recording system is designed and implemented in such a way as to guarantee the recording and integrity of entries and to make it possible, directly or indirectly, to identify the owners of the securities and the nature and number of securities held.
Registrations made in this registration system are subject to an updated business continuity plan, including a periodic external data retention system.
Where securities are registered in this recording device, the owner of such securities may have his own records of transactions.
The introduction of this new technology into the law allows for the completion of formalities in a dematerialised manner and, in particular, the keeping of a register of securities movements.
The share register is a document that chronologically records all transactions involving a company's shares (e.g. subscriptions, sales of shares, donations or contributions of shares).
Since the decree dated 24 December 2018, this register can be kept in a dematerialised manner. The decree gives a legal value to any record of securities movements registered on a DEEP.
In addition, this decree allows the blockchain to serve as a register of registered securities. This register will have a legal value and will be able to prove the entirety of the movements of securities that have been made in it.
Thus, financial securities can be held and materialised by a registration in securities accounts on a DEEP. The blockchain enables the storage of securities accounts, giving them legal value.
The securities account can be managed at an issuer or on the blockchain, either directly by its owner or by a proxy appointed for this purpose.
